With annual sales of 2.4 billion yuan, how did Tarte become the pillar of Kose Group's makeup?

Recently, the Japanese Kose Group released the data for the 2022 fiscal year. The financial report shows that during the period, the group's net sales were 289.1 billion yen (approximately RMB 14.69 billion), a year-on-year increase of 7.5%; operating profit was 22.1 billion yen (approximately RMB 1.12 billion), a year-on-year increase of 41.1%.

Specific to the brand, COSME, Aoerbin and Tarte are the three major revenue sources of the group in fiscal year 2022. Among them, Cosme's sales were 96.2 billion yen (about 4.89 billion yuan), a year-on-year increase of 7.5%. The sales of Aoerbin and Tarte were 52.3 billion yen (approximately RMB 2.66 billion) and 46.2 billion yen (approximately RMB 2.35 billion), a year-on-year increase of 2.6% and 27.1%, respectively.

Tarte is an American makeup brand established in 1999, with North America as the market center. Kose Group acquired it nine years ago as part of its globalization strategy. Today, the brand has become the revenue pillar of the group's cosmetics sector.

The group's financial report shows that Kose Group's Asian market has been affected by the epidemic, especially its stores in mainland China have been temporarily closed due to the epidemic. In addition, under the background of fierce competition in e-commerce, the growth of the Group's cosmetics brands has been hindered. However, with the adjustment of the epidemic policy, Kose Group is still optimistic about the performance of the Chinese market in the 2023 fiscal year.

Kose Group expects the Japanese market to grow by 5% to 7% in fiscal year 2023, mainland China is expected to grow by 10%, and China and South Korea's duty-free market is expected to grow by 2% to 5%. At present, KOSÉ Group is targeting the Chinese market and the growth of tourism retail centered on Hainan Island, and has expanded its business on multiple e-commerce platforms in China, and will continue to pay attention to this plan in the future.